Report: Arizona housing market still strong amid high mortgage rates, low inventory
PHOENIX (3TV/CBS 5) — When purchasing a home, buyers are having a tough time nationwide: high interest rates and low inventory are the culprits to blame. But a recent report shows Arizona is faring better than most states, thanks to an influx of jobs like those at the TSMC microchip plant.
This week, the National Association of Realtors reported that nationwide existing home sales are down more than 16% from this time last year. When we look at Arizona, the state is only down 3%. Experts say it’s due to the state’s growing economy.
Brandon Robben, a broker with Arizona Real Estate, says we are seeing many new jobs come to the Valley, and the TSMC plant is a huge part of that. Because of the plant, developers are building new homes. He also says Arizona is a diamond in the rough compared to other states because of our weather and laundry list of recreational opportunities.
“There’s so much stuff going on economy-wise with new jobs and whatnot that it’s just pushing that demand for housing up. And with our low supply, it’s keeping our prices pretty flat. They’re under what they were when they were at their highs in May of last year. “About 25 to 30 percent of our inventory is new construction. So that’s a big thing if you have buyers that are out there looking, you definitely want to introduce them to new construction,” Robben explained.
He says, though, that buyers are still having a tough time. Interest rates are high, so many are sitting on the sidelines until they fall or they could refinance. Inventory is also down to 12,500 properties, about half of what it was last year. Still, he says, all things considered, our state is thriving compared to national trends.
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